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GAO Sustains For Failure To Set Aside For Small Business

Client Alert | less than 1 min read | 10.20.04

In Information Ventures, Inc. (Oct. 8, 2004), GAO sustained a pre-award protest of an unrestricted procurement because the agency failed to take reasonable efforts to ascertain whether at least two small businesses were capable of performing the work, and, in fact, that the agency ignored known information that there were at least two small businesses that could have done so. Lesson learned from this case is that small businesses should carefully monitor the issuance of unrestricted procurements and object prior to the submission of proposals (due to strict GAO timeliness rules) if they believe that multiple small business are capable of performing the work.

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Client Alert | 3 min read | 11.21.25

A Sign of What’s to Come? Court Dismisses FCA Retaliation Complaint Based on Alleged Discriminatory Use of Federal Funding

On November 7, 2025, in Thornton v. National Academy of Sciences, No. 25-cv-2155, 2025 WL 3123732 (D.D.C. Nov. 7, 2025), the District Court for the District of Columbia dismissed a False Claims Act (FCA) retaliation complaint on the basis that the plaintiff’s allegations that he was fired after blowing the whistle on purported illegally discriminatory use of federal funding was not sufficient to support his FCA claim. This case appears to be one of the first filed, and subsequently dismissed, following Deputy Attorney General Todd Blanche’s announcement of the creation of the Civil Rights Fraud Initiative on May 19, 2025, which “strongly encourages” private individuals to file lawsuits under the FCA relating to purportedly discriminatory and illegal use of federal funding for diversity, equity, and inclusion (DEI) initiatives in violation of Executive Order 14173, Ending Illegal Discrimination and Restoring Merit-Based Opportunity (Jan. 21, 2025). In this case, the court dismissed the FCA retaliation claim and rejected the argument that an organization could violate the FCA merely by “engaging in discriminatory conduct while conducting a federally funded study.” The analysis in Thornton could be a sign of how forthcoming arguments of retaliation based on reporting allegedly fraudulent DEI activity will be analyzed in the future....

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